KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2024 WE ARE KENANGA OUR SUSTAINABILITY APPROACH LEADERSHIP STATEMENT HOW WE ARE GOVERNED OUR VALUE CREATION APPROACH FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION 35 34 STAKEHOLDER ENGAGEMENT MATERIAL MATTERS KENANGA’S DOUBLE MATERIALITY MATRIX WHAT IS MATERIAL TO US In 2024, we conducted our first double materiality assessment to meet evolving sustainability reporting standards and stakeholder expectations, in line with Bursa Malaysia and IFRS requirements, which also incorporate the Task Force on Climaterelated Financial Disclosures (“TCFD”) recommendations. This assessment provided a clear view of how our business impacts the environment and society, while also identifying sustainability risks and opportunities that may affect our financial performance. The outcome of the Double Materiality Assessment was reviewed by the Group Sustainability Management Committee and approved by the KIBB Board of Directors, underscoring its relevance to Kenanga’s operations. All 13 identified material issues are considered vital to Kenanga’s operations, including the two (2) newly added topics: Financial Inclusion and Risk Management. Financial Inclusion demonstrates Kenanga’s commitment to broadening access to our products and services, driving economic growth, and promoting social equity. Risk Management reflects our proactive approach to navigating complex risks, safeguarding client interests, and enhancing resilience against market, credit, and climate-related risks. The materiality ranking highlights digitalisation, good business conduct, risk management, and regulatory compliance as top priorities for Kenanga’s business operations. Digitalisation drives operational efficiency and competitiveness, while good business conduct and regulatory compliance safeguard our reputation. Effective risk management is critical for mitigating both financial and operational challenges. A strong foundation for Kenanga’s long-term growth lies in diversity and inclusion, employee wellbeing, client experience, and talent attraction. A diverse workforce drives innovation, while prioritising employee safety and health, and fostering strong client loyalty ensures sustainable success. Although responsible investing, climate impact, and community investment are ranked lower, they remain crucial to Kenanga’s future business resilience against climate risks impact. These areas support sustainable capital allocation, as well as strengthen environmental responsibility, and community relationships. This integrated approach to double materiality supports Kenanga’s long-term goals, driving business growth while aligning with ESG priorities. Financial Materiality Low High Medium Impact Materiality Medium Low High Cyber Security Risk Management Digitalisation Good Business Conduct Climate Impact Community Investment Diversity and Inclusion Employee Safety, Health and Wellbeing Talent Attraction, Development and Management Client Experience Regulatory Compliance Responsible Investing Legend: Economic Environment Social Governance Financial Inclusion For more information on Kenanga’s Double Materiality Matrix, please refer to pages 18 to 19 of our Sustainability Report 2024. AN INSIGHT INTO OUR STAKEHOLDERS’ PERSPECTIVES Stakeholder engagement, assessment, and feedback are fundamental to our organisation. We continuously strive to enhance our engagement approaches through various communication channels to ensure that we connect with our stakeholders, understand their needs, and respond to their key concerns. THOSE WHO WE COLLABORATE WITH How We Engage Areas of Interest Our Commitment Regulators and Government Bodies • Participate in industry discourse and ensure adherence to regulations and policies Employees • Engage through internal policies, meetings, emails, dialogues, training programmes, special events and performance appraisals Remisiers and Agents • Engage through policies and procedures, training programmes and special events Vendors • Collaborate through meetings, policies and procedures • Compliance culture • Cyber security and operational resilience • Training and development • Create a safe, inclusive and high-performing work environment • Embed our values of ethics, integrity and compliance throughout the organisation to drive a responsible business operations THOSE WHOM WE ARE ACCOUNTABLE How We Engage Areas of Interest Our Commitment Shareholders • Provide updates and gather feedback through meetings, reports and disclosures Clients • Provide products, tools, education and insights through our trading platforms, mass media channels, events, emails, websites and social media channels • Respond to queries, and gather input and feedback through social media channels, helplines and email • Cyber security and data protection • Portfolio performance • Financial inclusion • Financial literacy • Digitalisation • Responsible investing • New products and services • Market outlook • Enhanced client experience • Ensure our investors and shareholders are kept updated on how we embed ESG into our business strategy and operations • Incorporate feedback to create long-term, sustainable value for our stakeholders • Leverage innovation and technology to enhance the client experience THOSE WHOSE LIVES WE ENRICH How We Engage Areas of Interest Our Commitment Community Partners • Contribute to various social causes, particularly by supporting social enterprises • Encourage employee volunteerism and philanthropy Public • Disseminate investing knowledge through roadshows, social media channels and webinars • Community empowerment • Financial literacy • Create a positive impact on communities in need through targeted social investments and employee volunteerism • Enhance financial literacy in our communities empowering them to make decisions about their investments and financial resources
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